The 62-year-old takes over at Anfield on a three-year contract, 28 days after the departure of Rafael Benitez, who parted company with the Reds after a disappointing season saw them finish seventh in the table.

Hodgson, a former Inter Milan and Blackburn boss, was Liverpool’s first choice despite a host of other names being mentioned.

He said: “This is the biggest job in club football and I’m honoured to be taking on the role of manager of Britain’s most successful football club.

“I look forward to meeting the players and the supporters and getting down to work at Melwood.”

It is believed it has cost Liverpool £2million to release the Englishman from his contract at Craven Cottage.

Hodgson’s name had been linked with England after their disappointing World Cup campaign under Fabio Capello, but negotiations were already at an advanced stage with the Merseysiders and the deal has now been completed.